- Current Price (Oct 23, 2025): Around $345, up about 1.5% for the day [1]. Broadcom’s stock has surged roughly 50–70% in 2025 on booming demand for AI chips [2].
- Key Deals: On Oct. 13, Broadcom and OpenAI announced a 10‑gigawatt AI chip collaboration (worth an estimated $10B+) to build custom accelerators, sending AVGO up nearly 10% [3] [4]. On Oct. 14, Broadcom unveiled “Thor Ultra,” an 800G Ethernet networking chip for AI data centers [5] [6].
- Earnings & Guidance: In early Sept (Q3 FY2025), Broadcom reported $15.95B revenue (+22% YoY) and $1.69 EPS [7], both above consensus. CEO Hock Tan said AI-related sales grew 63% to $5.2B in Q3 [8]. Management boosted Q4 revenue guidance to about $17.4B (up ~24% YoY) due to “strong and accelerating” AI demand [9] [10].
- Analyst Sentiment: Wall Street is overwhelmingly bullish. Nearly 90% of analysts rate AVGO a Buy/Overweight [11]. JPMorgan raised its target to $400 and Piper Sandler to $375 [12]. Macquarie initiated at $420 [13]. The MarketBeat consensus target is about $372 (≈7% upside) [14]. Some bulls see far higher: KeyCorp and Barclays now eye $460–450 (30%+ upside) [15], calling Broadcom the “king of AI custom chips” [16]. By contrast, the most bearish recent target is just $345 (Wells Fargo) [17], implying only ~1% downside.
- Expert Quotes: TS2.Tech notes Broadcom has been “riding the twin waves of AI chip euphoria and strategic acquisitions,” fueling its 70%+ rally [18]. OpenAI’s Sam Altman commented that “partnering with Broadcom is a critical step in building the infrastructure needed to unlock AI’s potential” [19]. On the cautious side, Bernstein’s Stacy Rasgon warned post-earnings that Broadcom’s “expectations were already high,” given its premium valuation [20].
- Industry Context: The broader semiconductor and AI sectors are booming. The Philadelphia Semiconductor Index hit fresh highs on the AI wave [21]. Broadcom’s $1.6 trillion market cap makes it one of tech’s giants, behind only Nvidia ($2–3T) [22]. Unlike pure chipmakers, Broadcom also has a growing software business (VMware) contributing ~42% of revenue [23], giving it steady cash flow. The company pays a dividend (~0.7% yield) and generated record free cash flow ($7.0B in Q3) [24] [25].
- Risks & Outlook: Despite the bullish run, risks remain. AVGO’s forward P/E (~50×) far exceeds industry averages [26], meaning even a small earnings miss could spark a pullback. Geopolitical jitters (recent U.S.-China tech tensions) and a CISPE antitrust complaint in Europe over the VMware acquisition keep investor nerves on edge [27] [28]. Technical indicators were overbought in mid-Oct, so some analysts view the recent pullback as healthy consolidation [29] [30]. Most agree that Broadcom’s future hinges on delivering on its AI promises.
In sum, Broadcom’s story is clear: a blockbuster AI partnership (OpenAI) and new AI product launches have turbocharged expectations. Wall Street’s upgraded price targets reflect this, with many analysts now modeling Broadcom as a major AI infrastructure winner [31] [32]. As TS2.Tech puts it, Broadcom’s perceived central role in the AI boom has led to “outsized returns” [33]. General investors should note the optimism – but also the sky-high bar. Even with consensus targets around $370–380, many eyes are on whether Broadcom can keep exceeding lofty growth forecasts.
Sources: Contemporary financial news and analysis from Reuters, MarketBeat, TS2.Tech and other credible media [34] [35] [36] [37]. These highlight Broadcom’s latest AI deals, earnings, and analyst commentary (including TS2.Tech insights) as of Oct. 23, 2025.
References
1. www.marketbeat.com, 2. ts2.tech, 3. ts2.tech, 4. www.marketbeat.com, 5. ts2.tech, 6. www.reuters.com, 7. ts2.tech, 8. ts2.tech, 9. ts2.tech, 10. ts2.tech, 11. ts2.tech, 12. ts2.tech, 13. ts2.tech, 14. www.marketbeat.com, 15. www.marketbeat.com, 16. ts2.tech, 17. www.marketbeat.com, 18. ts2.tech, 19. ts2.tech, 20. ts2.tech, 21. ts2.tech, 22. ts2.tech, 23. ts2.tech, 24. ts2.tech, 25. ts2.tech, 26. ts2.tech, 27. siliconangle.com, 28. siliconangle.com, 29. ts2.tech, 30. ts2.tech, 31. ts2.tech, 32. www.marketbeat.com, 33. ts2.tech, 34. ts2.tech, 35. www.marketbeat.com, 36. www.reuters.com, 37. siliconangle.com
